SAN DIEGO and VANCOUVER, Aug. 16, 2013 /PRNewswire/ - Sophiris Bio Inc.
(Sophiris, TSX: SHS) (the "Company" or "Sophiris"), a biopharmaceutical
company developing a clinical-stage, targeted treatment for the
symptoms of benign prostatic hyperplasia (BPH or enlarged prostate),
today announced that it has entered into an underwriting agreement with
Citigroup and Leerink Swann, as joint book-running managers, with
respect to an offering (the "Offering") of 13,000,000 common shares of
the Company (the "Shares") at a price of US$5 per Share (the "Purchase
Price") for aggregate gross proceeds of approximately US$65 million.
Stifel and Lazard Capital Markets are acting as co-managers. The
Company has also granted to the underwriters a 30-day over-allotment
option (the "Option") to purchase up to an additional 1,950,000 Shares
at the Purchase Price, for additional aggregate gross proceeds of up to
approximately US$9.75 million. The Company will file a final short
form prospectus with the securities regulatory authorities in British
Columbia and Ontario in connection with the Offering.

The Company's common shares will trade on the NASDAQ Global Market under
the symbol "SPHS" beginning on August 16, 2013. The Company intends to
use the net proceeds from the offering to advance the development of
its candidate for treatment of BPH, PRX302, to service its outstanding
debt owing under a secured promissory note and for general and
administrative purposes. The offering is scheduled to close on or
about August 23, 2013 and remains subject to certain conditions
including, but not limited to, the receipt of approval of the Toronto
Stock Exchange (the "TSX").

Certain of the Company's existing shareholders and their affiliated
entities have indicated an interest in purchasing up to approximately
$22.4 million Shares in the Offering at the Purchase Price. These
shareholders include Tavistock Life Sciences Co. ("Tavistock") who is
expected to participate (but not lead) the Offering at a level that is
expected to dilute its current ownership position by approximately
50%. Together with its affiliates, Tavistock currently holds
approximately 961,538 Shares or 30.5% of the Company's issued and
outstanding Shares on a non-diluted basis. Following the closing of the
Offering, Tavistock is expected to own approximately 2,561,538 Shares
or 15.9% of the issued and outstanding Shares on a non-diluted basis,
or approximately 14.2% of the issued and outstanding Shares assuming
the full exercise of the Option.

The Offering was priced in the context of the market and was negotiated
on an arm's length basis. The Purchase Price represents a discount of
approximately 49.1% from the volume weighted average price on the TSX
for the 5 trading days ending on August 15, 2013. The Shares issuable
under the Offering constitute approximately 413% of the Company's
currently issued and outstanding Shares on a non-diluted basis, or
approximately 475% if the Option is exercised in full. It is not
expected that any new shareholders will materially affect the control
of the Company (as such term is defined in the policies of the TSX) as
a result of the Offering.

The Company was required to receive shareholder approval for the terms
of Offering pursuant to the provisions of the TSX Company Manual (the
"Manual") because (i) the TSX has decided under Section 606(b) of the
Manual to apply the private placement provisions of Section 607 of the
Manual to the Offering; (ii) the Purchase Price is at a discount that
is greater than the maximum applicable discount under Section 607(e) of
the Manual; (iii) Section 607(g)(i) requires shareholder approval
because the aggregate number of Shares issuable under the Offering is
greater than 25% of the number of Shares which are outstanding, on a
non-diluted basis, prior to the Offering and the price per security is
less than the market price; and (iv) Section 607(g)(ii) requires
shareholder approval because the number of Shares issued to insiders in
the Offering is greater than 10% of the number of Shares which are
issued and outstanding, on a non-diluted basis, prior to the date of
closing of the Offering. Shareholder approval has been obtained by the
written consent of more than 50% of the holders of the Company's issued
and outstanding Shares, including Tavistock.

Following the closing of the Offering, the only entity that is expected
to hold more than 10% of the Company's issued and outstanding Shares is
Tavistock, which will no longer materially affect control of the
Company.

To the Company's knowledge, there is no voting trust or similar
agreement or arrangement to be entered into in connection with the
Offering.

A registration statement relating to these securities was declared
effective by the U.S. Securities and Exchange Commission on August 15,
2013. This offering is being made by means of a prospectus, copies of
which may be obtained from Citigroup Global Markets Inc., c/o
Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New
York, 11717, or by email at batprospectusdept@citi.com or by phone at 1-800-831-9146, and Leerink Swann LLC, Attention:
Syndicate Department, One Federal Street, 37th Floor, Boston, Mass.,
02110, or by email at Syndicate@Leerink.com or by phone at 1-800-808-7525.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state or jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state or
jurisdiction.

About Sophiris
Sophiris Bio Inc. is a biopharmaceutical company developing a
clinical-stage, targeted treatment for the symptoms of benign prostatic
hyperplasia (BPH or enlarged prostate), which it believes is an
unsatisfied market with significant market potential. Sophiris' lead
candidate for BPH, PRX302, is designed to be as efficacious as
pharmaceuticals, less invasive than the surgical interventions, and
without the sexual side effects seen with existing treatments. Sophiris
is planning to begin a Phase 3 clinical trial of PRX302 in the second
half of 2013 subject to raising additional capital.

Certain statements included in this press release may be considered
forward-looking. Such statements involve known and unknown risks,
uncertainties and other factors that may cause actual results,
performance or achievements to be materially different from those
implied by such statements, and therefore these statements should not
be read as guarantees of future performance or results. All
forward-looking statements are based on Sophiris' current beliefs as
well as assumptions made by and information currently available to
Sophiris and relate to, among other things, our ability to meet the
closing conditions of the Offering, anticipated financial performance,
business prospects, strategies, regulatory developments, market
acceptance and future commitments. Readers are cautioned not to place
undue reliance on these forward-looking statements, which speak only as
of the date of this press release. Due to risks and uncertainties,
including the risks and uncertainties identified by Sophiris in its
public securities filings; actual events may differ materially from
current expectations. Sophiris disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.